Spring Season is Here – Insurance Updates to Know

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Auto and Home Insurance Discounts in Seattle, WashingtonHere are some updates on insurance or common questions we hear from customers.

Do I Need to Purchase Insurance When Renting a Car?

If you are planning on taking a trip this spring break, you may be renting a car. At the time of checking in or even during the process of getting a rental car reservation, every rental car company will ask if you want to purchase insurance.

Your personal auto insurance policy does provide you with coverage for a rental car, but it is always important to understand what your personal auto insurance policy covers. Even if you have full auto insurance coverage, your rental car is still not 100% covered.

If you get into a car accident in your rental car and the car needs to be repaired, the rental car agency will charge you for downtime since they cannot rent the car out again until it is fixed. It is also possible that the rental agency may claim diminished value if you damage the car. Purchasing this specific coverage from the rental agency would help cover the cost of these claims.

How Inflation is Impacting Insurance Policy Premiums

You may have noticed your home or auto insurance policy increased at renewal, but you didn’t have any tickets or claims. Inflation has caused rates to increase across the country. Not only are insurance carriers receiving more insurance claims than before, but it is also costing insurance carriers more with settling claims.

Anytime insurance carriers see an increase in claims, they will raise their premiums to all customers.

Inflation is also impacting your insurance coverage. For instance, if you have a homeowners loss, the cost to repair your home has increased substantially since inflation began. The cost of materials and labor is up.

If your insurance policy has increased significantly, reach out to us. We can re-quote you with other insurance carriers we represent to see if we can find you a more affordable policy.

Best insurance discounts

One of the best insurance discounts you can receive is bundling your auto and home/renters insurance together with the same insurance carrier. Paying your insurance policy in full or participating in a driver’s safety course/telematics program through your insurance carrier also provides you with additional discounts.

If you are looking for additional discounts, reach out to our agency.

Update Your Insurance Policy Every Few Years

Since inflation has increased, it may be time to review your current home insurance policy, specifically your replacement cost. If your home has increased in value over the past few years or if you have done major renovations that improved your home value, it is important your home insurance policy reflects those changes.

If your home value increased, but you didn’t make any changes to your policy & had to settle a claim, it is possible your home has become underinsured.

If you have expensive jewelry insured, it is advised to get it appraised every few years to ensure it is properly insured. If it has, be sure to let us know of the new value.

Insurance Coverage for Boats, RVs, ATVs, Motorcycles and more.

It’s that time of year when we start thinking about our powersport vehicles. Whether you are shopping for a new toy or need to review your current existing policy, our agents are here to help. We can explain your coverage options or provide you with a new insurance quote.

Is Water Damaged Covered By My Standard Home Insurance Policy?

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Water Damage Coverage in Seattle, WashingtonWater damage can occur in many ways in your home. Whether it is a burst pipe, a leak from your refrigerator or freezer, your house is flooded due to weather conditions, and more. It is important to understand what type of water damage is covered under your standard home insurance policy. Not all water damage would be covered in the event of a flood claim for a standard home insurance policy.

What type of water damage is most likely covered under your standard home insurance policy?

Most home insurance policies address water damage the same way as many claims and that is “sudden and accidental.” For instance, if freezing temperatures burst a pipe in your home and water leaks into the wall and causes damage or your water heater fails and contacts the surrounding drywall. Another example would be if your supply line on your toilet suddenly burst and caused damage to your bathroom.

What type of water damage is not covered under your standard home insurance policy?

If water damage occurs to your home over time, for instance, a leaky faucet or supply line that had clearly been ignored, this would not be covered by insurance as this is a maintenance issue.

When do you need flood insurance?

Water that enters your home from outside due to severe weather conditions would be considered flood damage and is not covered by a standard home insurance policy. For flood damage to be covered, you would need to carry a flood insurance policy. A flood insurance policy can be obtained possibly through your existing insurance company, or by calling our office. The cost of flood insurance will vary depending on your elevation risk. Quotes are simple and take just minutes.

Water Sewer Backup

Another water damage type of coverage that is not included in your standard home insurance policy is “Water Sewer Backup” coverage. This coverage is for when your drain lines get water forced back up them and into the home. This can occur from several different scenarios including municipal water drainage being overrun or a blocked pipe. When this occurs, you need a specific type of insurance policy to cover the damages.

If you have a question about your home insurance policy, please feel free to reach out to a licensed agent in our office. While each claims scenario is unique, prevention can oftentimes be the best course of action.

Protect your home from water damage with new technologies. Water leak alarms are a great way to ensure you don’t have water damaging your home. These small devices can be installed under sinks, near water heaters, and behind toilets easily. It is an inexpensive way to keep an eye on things in your home.

Is Your Insurance Coverage Enough?

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Do you have adequate insurance coverage for your home and vehicle? Would you know if you did? Find out here whether your home is underinsured.

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Whether auto or homeowners, insurance is a powerful form of protection against disasters. Insurance makes rebuilding possible when something unexpected happens, whether a house fire or a car crash.

Unfortunately, a significant portion of the population is likely underinsured. Although building costs have risen in recent months, only 30 percent of homeowners have updated their insurance policies to accommodate this change. To complicate matters, many homeowners performed home upgrades during the pandemic, but less than half have updated their homeowners insurance policies to accommodate the change.

Being underinsured may not be as bad as having no insurance, but it can be. Paying for insurance that won’t cover your costs in a disaster can be devastating, especially if you have no money to rebuild after the disaster.

This article will discuss the risks associated with being underinsured, what it means, and what you can do about it.

What Does It Mean to be Underinsured?

There are multiple ways that a person can be underinsured. To be underinsured means to have the wrong coverage or insufficient coverage to protect your home or car when a covered event occurs.

Wrong coverage. You buy a home near a river and purchase a standard homeowners insurance policy. A storm causes the river to rise, creating water damage. Your homeowner’s insurance policy does not cover flood damage. To protect from costs related to flooding, you need flood insurance. Your home is underinsured.

Insufficient coverage. You buy a home and insure the dwelling for an amount that covers the replacement cost if destroyed. You have homeowners insurance, but after several years, you no longer have enough coverage to rebuild your home if lost. Your home is underinsured.

How to Get Adequate Coverage

To determine whether your home and vehicle have adequate coverage, start by reading your insurance policies and analyzing your needs. Research building costs, vehicle prices, and more. Touch base with your insurance agent during this process to get a professional opinion.

Some tips:

  • Be honest with yourself about your insurance needs. Don’t risk underinsuring your home because lower premiums are currently more attractive.
  • Be honest with your insurance agent about your home size, the presence of other structures, home improvements, and more.
  • Talk to your insurance agent about separate scheduling of high-value items like jewelry.
  • Ask yourself whether you can afford the deductible on the policy you currently have or are considering. A higher deductible can reduce your premium costs, but would you be able to cover the cost of the deductible in the event of a covered event?
  • Review your auto and homeowners insurance coverage every year. Keeping tabs on your coverage makes it less likely that you’ll find yourself in a vulnerable position when a covered event occurs.

Have You Reviewed Your Insurance Coverage? If Not, It’s Time.

If you haven’t reviewed your homeowners and auto insurance coverage, it’s time – touch base with your insurance agent to kick off the process. Find out how much it would cost to increase your insurance coverage. Work with your agent to find a policy that will meet your needs.